On August 5, 2025, the U.S. Securities and Exchange Commission (SEC) announced the first Project Crypto directive, which changes the rules for liquid staking and opens its possibilities for institutional investors.
New Opportunities for Institutional Capital in Crypto
According to ZIGChain co-founder Abdul Rafay Gadit, pension fund employees and asset managers can now earn annual returns of 5-15% from staking rewards while remaining within liquid altcoins. This decision removes the incompatibility with traditional accounting and liquidity requirements posed by long-term lock-ups. Gadit emphasizes that new opportunities will foster broader acceptance of cryptocurrencies among institutional investors.
Regulatory Clarity Accelerating Ecosystem Growth
Marcin Kazmierczak, co-founder of the Oracle protocol RedStone, describes SEC’s stance as a milestone for the cryptocurrency market. In 2024, the total value locked (TVL) in liquid staking surged from $31.14 billion to $71.16 billion, reaching $68.66 billion as of August 5. Kazmierczak notes that the new framework also promotes systems functioning at the protocol level, reducing the need for human intervention.
Prospects of Liquid Staking Development
With 33.8 million ETH staked on Ethereum (28% of the total supply) and the overall staking market exceeding $60 billion, the removal of regulatory uncertainty could pave the way for the next growth phase of the ecosystem. This approach aligns with the core principles of blockchain by minimizing single points of failure.
The directive announced by the SEC opens new horizons for institutional investors, fostering the growth of liquid staking in the cryptocurrency market and contributing to the overall development of the ecosystem.
